Applying the 1% Rule

[Sidney K.]

I am just beginning the search for my first property and am getting bogged down by the "1% Rule" that is often referenced. it seems that there are few markets that satisfy this Rule, and those that do don't seem like ideal markets for long term appreciation. Does the 1% rule apply to a cash-flow maximization strategy rather than a long term equity appreciation strategy? Is it outdated in today's market?

I realize this rule is just a guideline and checking that box alone is not a thorough evaluation of a potential deal, I'm just curious how others think about and apply it during their deal analysis.